We looked at the string. The encoding of the string appears to be unusual (not sure if it is or is not compliant with the PDF specification). However, in general, we'd like to be able to show PDF content that the desktop Adobe Reader can, so we'd consider this a bug as well. I've filed that bug. Is it possible to share what you used to generate this PDF?

I gave some details in my email, but I used Acrobat 9.4 on a Mac (10.6.8). I created the first page using the app.newDoc JavaScript method and added the text using the TouchUp Text tool (Option-click). Preflight doesn't indicate any syntax problems. I'd be surprised if Acrobat is creating nonconforming files.